COTTON MARKET CONDITIONS IN NORTH CAROLINA. 9 



evidenced by the much higher average grade. Furthermore, it seems 

 evident that the failure of buyers in the Coastal Plain section to give 

 producers premiums for superior cottons has had a deleterious effect 

 upon the cotton produced. In the Coastal Plains cotton is bought 

 according to a system of averages, while in the Piedmont section 

 reasonable consideration is given to the class of individual bales. 



COMPARISON OF CASH WITH CREDIT SALES. 



The average prices for cash sales and for sales which are credited 

 to the owner's account by a merchant, as tabulated by the depart- 

 ment, showed a seeming* advantage for credit sales of about 15 points, 

 or 75 cents per bale. It is generally conceded that a merchant who 

 does not depend upon the handling of cotton for a livelihood, but 

 who uses it to collect accounts and induce trade, will handle cotton 

 for the mere cost, sometimes even at a loss. 



Important facts in this study were developed from an examination 

 of the individual sales. While the majority of credit sales were 

 slightly higher than average cash sales for the same grades, the 

 range between high and low prices was much greater for sales on 

 account than for cash sales. A number of credit sales were materially 

 higher than cash sales, but some credit sales were much lower than 

 the average cash sales. This indicates that the financial condition 

 of the seller enters into sales on account. The highest price seem- 

 ingly is paid to those who have no security except their cotton. Such 

 parties frequently are charged a higher price for supplies that they 

 purchase. Therefore, the higher price paid for cotton, the proceeds 

 from which are credited to their account, is in a large measure, if 

 not entirely, offset by the higher prices charged for merchandise. 



PRICES RECEIVED FOR CLASSED COTTON COMPARED WITH 

 PRICES RECEIVED FOR UNCLASSED COTTON. 



COASTAL PLAIN SECTION. 



A comparison of the average prices paid for cotton of the same 

 grades sold on the same dates during the 1914—15 season in Tarboro, 

 Edgecombe County, where it was classed, and three other towns 

 in the Coastal Plain section where it was unclassed is shown in Table 

 V. It will be noted that the cotton classed before sale brought an 

 average of 18 points, or $0.90 per bale, more than did the unclassed 

 cotton sold on the same dates at Fayetteville, Goldsboro, and Scot- 

 land Neck. Upon this basis the farmers of Edgecombe County, as 

 a direct result of the grading service rendered them, received about 

 $12,000 more than they otherwise would have received for the 

 season's crop. 



62489°— Bull. 476—17 2 



